Germany: controversy around the new social and environmental standards for the award of public contracts

In order to adapt national law to European Directive 2004/18/EC on the modernization of procedures for the award of public contracts, the Ministry of the Economy presented a bill which proposes to introduce social and environmental standards. The bill comes after a decision by the Court of Justice of the European Communities (see our article No. 080268) which forbade to condition a public contract to the minimum wage defined by a local collective agreement, set off an important controversy. (Ref. 080295)
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

The bill on awarding public contracts in Germany, presented last week by the conservative Michael Glos, Federal Minister of the Economy, caused an outcry among German employers. Following the recommendations of the EU Directive 2004/18/EC, the bill plans a long list of social and environmental criteria to respect in the future for companies willing to get access to German public contracts, which represent about €400 billion a year.

Employers contest these criteria. The Minister also wants to get

You are reading this article thanks to your trial period.
Explore new horizons by checking out our other verticals:
You are reading this article thanks to your subscription to Mind Retail.
Explore new horizons by checking out our other verticals:
Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
Netherlands: Uber fined over 800 million euros for automated algorithmic decisions
The news. In a decision dated 17 August, the Dutch Data Protection Authority fined ride-hailing company Uber €825 million for automating decisions regarding driver account deactivations. The...
Portugal: open consultation on the transposition of the Pay Transparency Directive
The news. On 5 August 2026, the Portuguese government published a document proposing a draft text to transpose the EU Pay Transparency Directive as the basis for a public consultation open until...
EU: the Commission will set up an Expert Group on the impact of AI in the world of work
The news. On 22 July 2026, the European Commission published a progress report on the EU-27’s achievements regarding the objectives of the European Pillar of Social Rights, reinforced by the...
Belgium: toward an additional five days of leave following the birth of a child
The news. On 18 July, the Belgian federal government approved a draft bill introducing an additional five days of leave following the birth of a child. This entitlement would be added to existing...